Stocks headed lower on Monday, continuing almost a month of losses. Is this a correction—and if so, how long will it last? Alan Lancz, president of Alan B. Lancz & Associates, and Ronald Carson, founder and chief executive of Carson Wealth Management Group, shared their market outlooks.
“I see a lot of downside in the market,” Carson told CNBC.
“This process of just hoping things are going to go up hasn’t worked for a decade and we’re quite confident that it’s not going to work for another decade.”
Carson said he sees the S&P dropping near 500 to 700 and “could get even lower.”
“I think we’re going to have a double-dip recession—this time next year, we’re going to be in a recession,” he said. “Housing is going to lead the way.”
Lancz: Seize the Opportunity
In the meantime, Lancz said this is a good opportunity for investors to selectively buy on the dips.
“The economies are doing better globally—what we’re doing is utilizing this weakness to add high-quality companies like ExxonMobil and Baxter and we’re going to add the higher beta stocks* as the market goes down,” he said. “Investors have to be nimble—I don’t think it’s an all-bull or all-bear.”
“We’re going to have a volatile market and you take advantage of the violent swings,” Lancz added.
*Beta: a measure of a stock's volatility relative to the market. Generally, the higher the beta, the higher the risk.
Scorecard — What They Said:
- Carson's Previous Appearance on CNBC (Apr. 30, 2010)
- Lancz's Previous Appearance on CNBC (May 7, 2010)
Second Opinions — Bears:
Opposing Views — Bulls:
CNBC Data Pages:
Monday's Top Dow Gainers (as of this writing):
Johnson & Johnson
No immediate information was available for Carson or Lancz.